Question 1

The Securities and Exchange Commission:

Accepted Answer

A) verifies the accuracy of the information contained in the prospectus. 
B) verifies the accuracy of the information contained in the red herring. 
C) examines the registration statement during the Green Shoe period. 
D) is concerned only that an issue complies with all rules and regulations. 
E) determines the final offer price once they have approved the registration statement. 
A) verifies the accuracy of the information contained in the prospectus. 
B) verifies the accuracy of the information contained in the red herring. 
C) examines the registration statement during the Green Shoe period. 
D) is concerned only that an issue complies with all rules and regulations. 
E) determines the final offer price once they have approved the registration statement.

Question 2

Miller Fruit wants to expand its citrus grove operations.The firm estimates that it needs $8.6 million to buy land and establish its operations.Currently, the firm has 540,000 shares of stock outstanding at a market price per share of $34.80.If the firm decides to raise the needed capital through a rights offering, one right will be issued for each share of stock.The subscription price will be set at $33 a share.How many rights will a shareholder need to purchase one new share of stock in this offering?

Accepted Answer

A) 2.07 rights 
B) 2.17 rights 
C) 2.22 rights 
D) 2.50 rights 
E) 2.67 rights 
A) 2.07 rights 
B) 2.17 rights 
C) 2.22 rights 
D) 2.50 rights 
E) 2.67 rights

Question 3

Miller & Chase is offering $4 million of new securities to the general public.Which SEC regulation governs this offering?

Accepted Answer

A) Regulation A 
B) Regulation C 
C) Regulation G 
D) Regulation Q 
E) Regulation R 
A) Regulation A 
B) Regulation C 
C) Regulation G 
D) Regulation Q 
E) Regulation R

Question 4

Jones & Co.is funded by a group of individual investors for the sole purpose of providing funding for individuals who are trying to convert their new ideas into viable products.What is this type of funding called?

Accepted Answer

A) green shoe funding 
B) tombstone underwriting 
C) venture capital 
D) red herring funding 
E) life cycle capital 
A) green shoe funding 
B) tombstone underwriting 
C) venture capital 
D) red herring funding 
E) life cycle capital

Question 5

Which of the following should be considered when selecting a venture capitalist?
I.level of involvement
II.past experiences
III.termination of funding
IV.financial strength

Accepted Answer

A) I and III only 
B) II and IV only 
C) I, III, and IV only 
D) I, II, and IV only 
E) I, II, III, and IV 
A) I and III only 
B) II and IV only 
C) I, III, and IV only 
D) I, II, and IV only 
E) I, II, III, and IV

Question 6

What is a seasoned equity offering?

Accepted Answer

A) an offering of shares by shareholders for repurchase by the issuer 
B) shares of stock that have been recommended for purchase by the SEC 
C) equity securities held by a firm's founder that are being offered for sale to the general public 
D) sale of newly issued equity shares by a firm that is currently publicly owned 
E) a set number of equity shares that are issued and offered to the public annually 
A) an offering of shares by shareholders for repurchase by the issuer 
B) shares of stock that have been recommended for purchase by the SEC 
C) equity securities held by a firm's founder that are being offered for sale to the general public 
D) sale of newly issued equity shares by a firm that is currently publicly owned 
E) a set number of equity shares that are issued and offered to the public annually

Question 7

Jefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of stock they own.The new shares in this offering are priced at $19 plus 3 rights.The current market price of the stock is $23 a share.What is the value of one right?

Accepted Answer

A) $0.25 
B) $1.00 
C) $1.25 
D) $1.50 
E) $2.00 
A) $0.25 
B) $1.00 
C) $1.25 
D) $1.50 
E) $2.00

Question 8

D.L.Jones & Co.recently went public.The firm received $20.80 a share on the entire offer of 25,000 shares.Keeser & Co.served as the underwriter and sold 23,700 shares to the public at an offer price of $22 a share.What type of underwriting was this?

Accepted Answer

A) best efforts 
B) shelf 
C) over subscribed 
D) private placement 
E) firm commitment 
A) best efforts 
B) shelf 
C) over subscribed 
D) private placement 
E) firm commitment

Question 9

What is the form called that is filed with the SEC and discloses the material information on a securities issuer when that issuer offers new securities to the general public?

Accepted Answer

A) prospectus 
B) red herring 
C) indenture 
D) public disclosure statement 
E) registration statement 
A) prospectus 
B) red herring 
C) indenture 
D) public disclosure statement 
E) registration statement

The Securities and Exchange Commission:

Miller & Chase is offering $4 million of new securities to the general public.Which SEC regulation governs this offering?

Jones & Co.is funded by a group of individual investors for the sole purpose of providing funding for individuals who are trying to convert their new ideas into viable products.What is this type of funding called?

Which of the following should be considered when selecting a venture capitalist? I.level of involvement II.past experiences III.termination of funding IV.financial strength

What is a seasoned equity offering?

Jefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of stock they own.The new shares in this offering are priced at $19 plus 3 rights.The current market price of the stock is $23 a share.What is the value of one right?

D.L.Jones & Co.recently went public.The firm received $20.80 a share on the entire offer of 25,000 shares.Keeser & Co.served as the underwriter and sold 23,700 shares to the public at an offer price of $22 a share.What type of underwriting was this?

What is the form called that is filed with the SEC and discloses the material information on a securities issuer when that issuer offers new securities to the general public?

Introduction to Corporate Finance

Corporate Governance

Financial Statement Analysis

Introduction to Valuation: the Time Value of Money

Discounted Cash Flow Valuation

Bond Valuation

Equity Valuation

Net Present Value and Other Investment Criteria

Making Capital Investment Decisions

Project Analysis and Evaluation

Some Lessons From Recent Capital Market History

Return, Risk and the Security Market

Cost of Capital

Raising Capital

Dividends and Payout Policy

Short-Term Financial Planning and Management

International Corporate Finance

Behavioural Finance

Financial Risk Management

Options and Corporate Finance

Filters

Exam 15: Financial Leverage and Capital Structure Policy

The Securities and Exchange Commission:

Miller & Chase is offering $4 million of new securities to the general public.Which SEC regulation governs this offering?

Jones & Co.is funded by a group of individual investors for the sole purpose of providing funding for individuals who are trying to convert their new ideas into viable products.What is this type of funding called?

Which of the following should be considered when selecting a venture capitalist? I.level of involvement II.past experiences III.termination of funding IV.financial strength

What is a seasoned equity offering?

Jefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of stock they own.The new shares in this offering are priced at $19 plus 3 rights.The current market price of the stock is $23 a share.What is the value of one right?

D.L.Jones & Co.recently went public.The firm received $20.80 a share on the entire offer of 25,000 shares.Keeser & Co.served as the underwriter and sold 23,700 shares to the public at an offer price of $22 a share.What type of underwriting was this?

What is the form called that is filed with the SEC and discloses the material information on a securities issuer when that issuer offers new securities to the general public?

Introduction to Corporate Finance

Corporate Governance

Financial Statement Analysis

Introduction to Valuation: the Time Value of Money

Discounted Cash Flow Valuation

Bond Valuation

Equity Valuation

Net Present Value and Other Investment Criteria

Making Capital Investment Decisions

Project Analysis and Evaluation

Some Lessons From Recent Capital Market History

Return, Risk and the Security Market

Cost of Capital

Raising Capital

Dividends and Payout Policy

Short-Term Financial Planning and Management

International Corporate Finance

Behavioural Finance

Financial Risk Management

Options and Corporate Finance

Filters